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House Republicans Push Forward on Sweeping Tax and Medicaid Cuts

Despite internal GOP divisions and bipartisan criticism, Speaker Johnson aims to pass the $5 trillion tax and spending package by Memorial Day.

Youth volunteers package and organize food at the San Antonio Food Bank on March 27, 2025, in San Antonio, Texas.
Speaker of the House Mike Johnson, R-La., speaks during a news conference at the Capitol, Tuesday, May 6, 2025, in Washington. (AP Photo/Rod Lamkey, Jr.)

Overview

  • House Republicans advanced key components of a $5 trillion tax cut and $1.5 trillion spending reduction package after marathon committee sessions.
  • The package includes $880 billion in Medicaid cuts, introducing work requirements, cost-sharing fees, and state penalties, which could result in over 10 million losing coverage by 2034, according to CBO estimates.
  • Moderate and hardline GOP members remain divided, with disputes over Medicaid work requirements starting in 2029 and the state and local tax (SALT) deduction cap unresolved.
  • Senate Republicans, including Josh Hawley and Ron Johnson, have raised concerns about Medicaid benefit cuts and insufficient deficit reduction, with warnings of potential vetoes.
  • Democrats and advocates have strongly opposed the cuts, citing risks to health care and food assistance for millions, while protests and disruptions marked committee debates.